I once had a conversation with a lawyer where we discussed how to advise a client on raising capital. When you raise money for your company--for example by selling shares or debt in your company--you must comply with the securities laws. This can be at the state level, the federal level, or both. Under the securities laws, you have to register your offering with the SEC, which costs a lot of money or you can use an exemption, which is a lot less expensive. The most popular ex

Today, I want to talk about what you need to know when you fund your company with the help of your friends and family. People advise against taking money from friends and family for various reasons, including that it’s something that can ruin a good relationship, but we’re not talking about that today. We’re talking about what you have to think about from a legal perspective when you raise money from friends and family. A potential rift in your relationship with your friends

Humble Beginnings Recently, I visited a tea shop called, “Boba Guys.” If you’re not from the Bay Area, you may not have heard of it. In 2011, Boba Guys launched with a single location in San Francisco’s Mission District and people lined up around the block for its boba drinks. Boba Guys sells boba tea, a drink made with tea, milk, and tapioca balls. While sipping on the beverage, you get mouthfuls of tapioca balls, so it’s a dessert and beverage in one. Changing the Face of B

When I talk to entrepreneurs about raising money for their businesses, a common fear they have is losing control of their company. This is understandable because most entrepreneurs go into business because they want to build the company of their dreams and run it on their own terms. In addition, many founders get fired by the very company they founded. Even Steve Jobs got fired by Apple. When businesses sell equity in their company, there is a chance that the founder will get